After major weekly support was broken in gold during yesterday’s Asian Session, Bloomberg Business today had an interesting graph comparing the performance of different asset classes, highlighting just how terribly commodities have been performing:
“It’s the year’s worst-performing asset class, with the Bloomberg gauge down more than 7 percent. In Monday’s drop, the value of holdings in exchange-traded products for gold plunged to its lowest since 2009. During a stretch of about 15 minutes in Asian trading hours, prices of the metal fell the most in two years.”
I’ve been talking about price being very heavy, and playing for a breakout of the major weekly support zone marked here. Yesterday, sellers pushed price through that level and stops sustained the breakout.
Gold Daily:
Ask me Anything
What an evening! If you read CNBC, Greece has been declared officially debt free after repaying it’s €2+ billion debt to both the IMF and ECB overnight. The only problem is that it was payed with yet more borrowed money… The never ending circle continues.
I’m sure you’ve at least heard of the website called Reddit? If you haven’t, it’s basically a giant bulletin board to post links and start discussions on just about anything. Anyway, I have never gotten into it myself, but saw something called an ‘AmA’ pop up on one of my social media streams.
IAmA (n) / AMA:
This terminology is basically exclusive to Reddit, and these two abbreviations are usually found together in the name of a specific thread. IAmA means just that: I am a (or an). And AMA means ask me anything.
This particular AmA topic was a request for ex Greek Finance Minister Yanis Varoufakis to answer some questions. Although he probably has better things to do than troll Reddit (although, you never know), there is quite a good discussion going on around some of the big questions that remain unanswered like, do you still believe in Europe, or did you know at the time you resigned as Finance Minister that Tsipras was going to accept the Eurogroup’s bailout?
On the Calendar Tuesday:
JPY Monetary Policy Meeting Minutes
AUD Monetary Policy Meeting Minutes
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Chart of the Day:
Popular belief had the crowd thinking that with central banks across the globe printing money, that Gold would rally back towards highs because of its reputation as a safe haven. Obviously that hasn’t been the case and with the Fed now destined to push ahead with raising rates this year, the US Dollar is still king.
St. Louis Fed President James Bullard overnight added fuel to the fire with these comments:
“There is a better than 50% chance that the Federal Reserve will raise interest rates in September.”
USDX Daily: